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I think this is the classical blinding out situation.
Your buddy has 4 chips. he keeps folding, and now he is the big blind, and is supposed to put 12 chips in. He only has 4, so he puts the 4 in, which is correct that he can do it, and has to do it, and he can win a part of this main pot, as was described in the post before this. Typically he will flip crap cards and lose and be gone.
blinding out doesn't so much mean you are forfeiting anything, as I think you're taking it to mean, it means waiting until the blinds are huge in relation to your stack such that you have to play any 2 or are put all in by the blind.
it in general is pathetic to blind out, because you are better off pushing somewhere with a 30% chance of winning a nice sized pot, than pushing at the last second with a 30% chance of still being up shit creek for another orbit.
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